In an LP model, what does the fourth hidden component contain?
A) product mix variables
B) slack and surplus variables
C) financial and accounting variables
D) constraint and limit variables
B
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Which of the following statements about the Homeowners 8 policy is (are) true?
I. Losses to the dwelling are settled on a replacement cost basis if the dwelling is insured for its full market value. II. It is designed primarily for expensive, newer, dwellings. A) I only B) II only C) both I and II D) neither I nor II
Which of the following choices will result in a greater future value at age 65?
Choice number 1 is to invest $3,000 per year from ages 20 through 26 (a total of seven investments) into an account and then leave it untouched until you are 65 (another 39 years). Choice number 2 is to begin at age 27 and make $3,000 deposits into an investment account every year until you are 65 years old (a total of 39 investments). Each account earns an average of 10% per year. (The investments are end-of-year payments.) A) Choice 1 is better than choice 2 because it has a FV of $1,304,146.89, which is greater than choice 2 FV of $1,204,343.33. B) Choice 2 is better than choice 1 because it has a FV of $1,304,146.89, which is greater than choice 1 FV of $1,204,343.33. C) Choice 2 is better than choice 1 because it has a FV of $1,204,343.33, which is greater than choice 1 FV of $1,171,042.63. D) Choice 1 is better than choice 2 because it has a FV of $1,288,146.89, which is greater than choice 2 FV of $1,204,343.33.